Chief Executive Officer and General Manager Mauro Moretti and Chief Financial Officer present the FY2016 Results

1. FY 2016 Results & 2017-2021 Industrial Plan
London, 16 March 2017
Mauro Moretti CEO & General Manager
Gian Piero Cutillo Chief Financial Officer

2. 2013 – 2016 KEY ACHIEVEMENTS
(CEO and General Manager)
2016 RESULTS AND OUTLOOK
(CFO)
2017-2021 INDUSTRIAL PLAN: DEVELOPMENT AND GROWTH
(CEO and General Manager)

3. 3
Great evidence of the good progress we have made on our journey
We have changed
We have delivered on promises and targets…..
We are in a better place ….
And we are now going to move forward …. and develop and grow
2016 was another year of very good performance…That enables us to restart
proposing a dividend payment of € 14 cents per share
And we are committed to continuing to deliver more progress in the future:
Development and Growth
Key messages

4. 4
Delivering on our promises
Key achievements 2013-2016
Detailed analysis of competitive positioning and performance
of all business/ product lines
New Organisational and Operating Model and new
«Leonardo» brand
Material step up in profitability and Net Result…
streamlining industrial process (Engineering, Supply Chain,
Manufacturing)
… and cash flow generation
Strengthening the order book with increased attention on the
quality of orders
Focus on core A,D&S business and product portfolio
rationalisation
Disposal of non-core business completed (Transportation,
DRS lines and Fata)
Strengthening the core business: increased stake in Avio
SUSTAINABILITY
CUSTOMER
FOCUS
CORE
BUSINESS
GROWTH
INDUSTRIAL
EFFICIENCY
ASSESS
4Q 2014
STRENGTHEN
2015 – 2016
DEVELOPMENT & GROWTH
2017 - 2021

5. 5
So this is what I told you we would do in January 2015…
Below the line
Much lower volatility
Net income
Net Equity Net Debt
FOCF
More balanced and flexible Capital Structure to support DEVELOPMENT
Profitability
+
Working capital Investments
+

6. 6
… and this is what we delivered
2016 vs. 2013
+
-368%
From €809mln to €173mln
Below the line
Much lower volatility
Net Result
+190%
From -€649mln to €545mln
Net Equity
+19%
From €3.7bn to €4.4bn
Net Debt
-27%
From €3.9bn to €2.8bn
FOCF
+421%
From -€220mln to €706mln
-56%
From €962mln to €427mln
self-financing Index
from 0.6 to 1
InvestmentsOperating WC
-13%
From ca. €6bn to ca €5.2bn
On track to achieve >15%
reduction by 2017
Profitability
+
EBITA +43%
From €878mln to €1,252mln
RoS +400bp
From 6.4% to 10.4%
SG&A -25%
€1,278mln to €961mln

7. 7
Finmeccanica in 2013*
EBITA (€M) - EBITA%
*Space sector consolidated under the Equity Method
EBITA
ROS%

8. 8
Leonardo today*
EBITA (€M) - EBITA%
*Space sector consolidated under the Equity Method
EBITA
ROS%

9. 9
2013 – 2016 KEY ACHIEVEMENTS
(CEO and General Manager)
2016 RESULTS AND OUTLOOK
(CFO)
2017-2021 INDUSTRIAL PLAN: DEVELOPMENT AND GROWTH
(CEO and General Manager)

10. 10
Strong delivery of Industrial Plan
Continued benefits from a stronger, more solid and better balanced portfolio
ca.€20bn of new orders, book to bill at 1.7x
Aeronautics and Electronics, Defence & Security Systems continue to
outperform vs expectation
Helicopters ended 2016 strongly, even in though market conditions
Resulting in another year of delivery in line with guidance
Orders, revenues and EBITA as expected, with major step up in net result due
to lower below the line, financial charges and taxes
FOCF at €706mln, higher compared to the original expectation, due to the net
impact of the first advance payment for the Eurofighter Kuwait. Total 2016-2017
cumulated net impact reconfirmed at ca. EUR 600 million
Net debt at €2.8bn despite negative forex effect
Continued progress expected in 2017
Key messages

11. 11
New Orders
All the Sectors with book-to-bill above 1
€ Mln
FY
2016
+483.5%-3.6%- 4.4% +61.3% % Ch. vs. FY2015
New orders benefitting from the €7.95bn Eurofighter Kuwait contract
Also excluding the EFA-Kuwait, Aeronautics (M346, ATR and B787) increases YoY offsetting
decline in Electronics, Defence and Security Systems (due €/£ translation effect) and Helicopters
Net of ca.
€400mln of
negative
exchange rate

12. 12
Revenues
Lower YoY due to change in perimeter, shortfall in Helicopters and forex
€ Mln
FY
2016
+0.4%- 3.3%- 18.8% - 7.6% % Ch. vs. FY2015
Net of ca.
€300mln of
negative
exchange rate

13. 13
Profitability improvement
EBITDA improving trend continues, margin 150bp higher YoY
€ Mln
FY
2016
Ch. vs. FY2015+1.9 p.p.+0.8 p.p.- 0.3 p.p. + 1.5 p.p.
EBITDA per capita +50% vs 2013, at 40k

14. 14
Profitability improvement
All Sectors above 10% RoS
€ Mln
FY
2016
Ch. vs. FY2015+ 1.1 p.p.+1.1 p.p.- 0.7 p.p. + 1.1 p.p.
EBITA increases despite lower volumes and negative impact of €/GBP
Continuous improvement in Electronics, Defence & Security Systems and Aeronautics
Delivering on promises in Helicopters: profitability at ca.12% showing resiliency in challenging
market conditions
Net of ca.
€30mln of
negative
exchange rate

15. 15
SG&A reduction target of >10% from 2013 to 2015 exceeded, leveraging on cost cutting initiatives
Additional 7% reduction achieved in 2016 vs 2015
Further optimisation expected in 2017-2021 thanks to the full implementation of the “One
Company”
SG&A to remain below 8% of Revenues
€ Mln
SG&A
Target exceeded and further optimisation to come
% of Revenues

16. 16
Net Result Improvement
More than doubled on lower below the line and net financial expenses
FY2015 FY2016
€ Mln€ Mln
1,208
884
253
1,252
982
545
“Below the line” materially reduced, with volatility fully under control
Significant reduction of net financial expenses
Lower financial costs from Bond buy back and renegotiation of the RCF (July 2015)
Positive effect of fair value
Lower tax rate
+3.6% +11.1% +115.4%

17. 17
Working Capital net of Customer Advances
Customer Advances expected to decrease YoY (approx -
6% per year), excluding EFA Kuwait
Net of Customer advances impact, initiatives put in place
lead to an operating working capital reduction
Reducing trend also in 2016.
More to be done but on track to reach 2017 target, before
taking into account the impact of EFA Kuwait ramp-up
Material rationalisation of Investments (CAPEX + R&D)
>20% reduction target and already 1x self-financing index
target achieved in 2015.
2016 temporary reduction in the level of investments
From 2017 onwards investments expected to remain
broadly flat at ca. €550-600mln
Investments aimed at sustaining the business in the future
confirmed, key programmes not delayed
550-600 mln
1.0x
Self-financing index (Depreciation / Net Investments)
-13%
Net Invested Capital streamlining
Target exceeded on investments and on track to deliver Working Capital reduction
On track to
deliver >15%
reduction in
2017, excl. EFA
Kuwait ramp-up
-56%

18. 18
Balance Sheet solidity
Financial position and Credit Rating (as of end of December 2016)
(€mil) Average life: ≈ 7 years
Debt maturity profile
46 46 46 46 46 46
521 500
739
556
500412
261
433
371
2017 2018 2019 2020 2021 2022 2025 2039 2040
Sterling Bond
Euro Bond
EIB
Dollar Bond
As of today Before last review Date of review
Moody's Ba1 / Stable Outlook Ba1 / Negative Outlook August 2015
S&P BB+ / Stable Outlook BB+ / Negative Outlook April 2015
Fitch BB+ / Positive Outlook BB+ / Stable Outlook October 2016
FINANCIAL POSITION
Bond 4.292
EIB Loan 278
Cash Available (2.167)
Other financial assets/liabilities 442
2.845

19. 19
FY2017 Guidance
(*) Assuming €/$ exchange rate at 1.15 and €/£ at 0.85
FY2016A FY2017E*
New orders € bn 20.0 12.0 – 12.5
Revenues € bn 12.0 ca. 12.0
EBITA €mln 1,252 1,250 – 1,300
FOCF €mln 706 500 – 600
Group Net
Debt
€ bn 2.8 ca. 2.5
New Orders: increasingly selective with
tighter return criteria, to reduce execution risk
and improve quality of results
Revenues: expected to be broadly flat
EBITA: further improvement confirmed also in
profitability
Below the line: further reduction of the non-
recurring items
FOCF: 2016-2017 cumulative net effect of the
EFA Kuwait advance payment confirmed at
around € 600 mln
Net Debt: down ca. €300mln, including the
acquisition of Daylight Solutions and the
proposed payment of dividend for €0.14 p.s.

20. 20
Development and Growth based on solid foundation
Leonardo is now a much different Group…
More focused
Better balanced between Sectors
With improved financial solidity
… based on solid foundations for Development and Growth

21. 21
2013 – 2016 KEY ACHIEVEMENTS
(CEO and General Manager)
2016 RESULTS AND OUTLOOK
(CFO)
2017-2021 INDUSTRIAL PLAN: DEVELOPMENT AND GROWTH
(CEO and General Manager)

22. 22
The new phase: Development and Growth
2017 – 2021 Industrial Plan
INDUSTRIAL
EFFICIENCY
CUSTOMER
FOCUS
LEADING
INNOVATION
SUSTAINABILITY
Financial flexibility
Strong order backlog
Supportive market environment

23. 23
Strong Foundations
A supportive market environment
PROCUREMENT E RD&TE (2016 – 2021) – VALUES %
 360
 390
 425
CAGR2017-2021ProcurementeRDT&E
2017-2021 cumulated Procurement and RDT&E
Fonte: IHS Jane’s and Leonardo estimates
Exchange rate $/€= 0,9012
(€ bn)
Defence spending expected to grow 3%
Italy expected to decline and
internationalisation is key
Fastest growth in new markets (i.e. China,
India, Middle East)
Specific opportunities
European Defence Fund
Potential acceleration of US
defence spending
Under spend of NATO countries

24. 24
Eurofighter Kuwait
B787
Strong Foundations
Robust Order Book
Italian Naval Law
FSOM (avionic support services
for the Typhoon aircraft)
IFF (Identification Friend or Foe)
AW Family
New Exploration and Escort
helicopter
UK IOS and Customer support
AERONAUTICS ELECTRONICS, DEFENCE &
SECURITY SYSTEMS
HELICOPTERS

25. 25
Disciplined financial strategy in using our resources
Investment grade
Debt reduction
Strategic investments
Shareholders’ remuneration
Strong Foundations
Capital strenght to invest

26. 26
Development & Growth Actions
Four Growth Pillars
«One Company» model established in UK
One single international presence focused on key countries
Affordability and Customer Intimacy to fulfill customer needs and
increase competitiveness
Integrated offering and focus on service/through-life solutions
Enhancing innovative technologies
Organic growth by focusing on products/systems of excellence
Evaluating options of external growth
Continuing on the efficiency path
Engineering, exploiting commonalities of transversal
technologies
Manufacturing, focusing on centers of excellence
Increase the centralisation of Procurement
Extending unified ICT system to suppliers / Client
Responsible business conduct (reputation and reliability)
LT value creation of Supply Chain, Engineering and Manufacturing
HR evolution (talent development)
CUSTOMER
FOCUS
CORE BUSINESS GROWTH
INDUSTRIAL EFFICIENCY
(CENTRES OF EXCELLENCE)
SUSTAINABILITY

27. 27
2014 – 2016 actions
Common rules
One single centralized process (register, supplier
portal, black list)
Direct costs efficiency (saving equipment, sub-
supplies and materials)
“Should Cost” approach to reduce unit costs
Reduce controllable costs and Material handling
SUPPLY CHAIN
PROCUREMENT
Productivity and efficiency programs
Reduce off-load on core activities
Internalisation and training plan
ENGINEERING
Industrial efficiency implementation
Reduce controllable costs of establishment,
overhead and hourly rates
Exploit synergies between sites
MANUFACTURING
Further opportunities
Continue to execute on long-term efficiency
programmes
Further benefits to be extracted
Fully leverage the One Company
To deliver Group synergies
Specific opportunities
Procurement centralisation
Aeronautics manufacturing
In sourcing
Asset optimisation across divisions (skills,
facilities)
Centers of excellence
RoS to 11% by mid-term of the plan
Industrial Efficiencies
To be leveraged from phase 1; more opportunities in phase 2
EBITA from €878mln to €1,252mln +43%
ROS from 6.4% to 10.4% (+400 bp)
EBITA per Capita + 70%

28. 28
INTERNATIONALISATION
NEW BUSINESS
MODELS
CUSTOMER
FOCUS
CUSTOMER INTIMACY
AFFORDABILITY &
COMPETITIVE
PRODUCT PORTFOLIO
Customer focus
At the heart of our growth agenda

29. 29
Areas of excellence in proprietary
platforms (i.e. trainers)
Reference role in major international
cooperation programs (i.e. EFA, MALE)
Complete portfolio of cutting edge
products and services in Training
Further strengthen the role in international
cooperation programs
Develop the activities of Customer Support
& Service
Core Business Growth
Opportunities in Existing Programmes
Portfolio of innovative and competitive
products
Higher profitability compared to peers
Negative conjuncture linked to the market
environment
Continue to invest in dual-use platforms to
compete on international markets (i,.e.
AW149 - Exploration and Escort
helicopter, AW189/169)
Further strengthen the Customer Support
& Service
AERONAUTICS HELICOPTERS
Becoming a technology leader to play a
key role in the industry consolidation
process
Leader in trainers, also leveraging on new
business models (i.e. Service)

30. 30
Technologies and solutions in all domains
(land, sea, air, cyber), with some areas of
excellence
Consolidated position in Europe;
significant results achieved in export
markets
Leverage on industrial cooperation
projects to enhance positioning in the
European consolidation process
Review the business model by managing
more effectively the value chain in
technological developments and rapidly
changing competitive environment (new
player)
Consolidate role in launchers (Avio)
ELECTRONICS, DEFENCE &
SECURITY SYSTEMS
SPACE
Strengthen positioning by managing
effectively the value chain
European leader with enhanced capacity
of international penetration
Core Business Growth
Opportunities in Existing Programmes

31. 31
NETWORKED
CAPABILITIES
NEW
TECHNOLOGIES
NEW HUMAN
MACHINE
INTERACTIONS
Battlefield of Things Manned-Unmanned
Integration
Advanced platforms with
networked capabilities
Directed Energy
Weapons
Nano Devices Cyber Security
Wearable Technologies Human Machine Interfaces Augmented Reality
MAIN MEDIUM-LONG TERM DRIVERS
Innovation is vital to compete in increasingly challenging markets
Core Business Growth
Underpinned By Key Innovations Across Our Divisions

32. 32
HELICOPTERS
SPACE
DEFENCE
ELECTRONICS
AND CYBER
 Acquiring full control of “Sistemi Dinamici” to further
strengthening the unmanned business
 Increase stake in Avio from 14% to about 28%, aimed at
boosting the space launchers sector
 Acquisition of the US company Daylight Solutions,
leader in Quantum Cascade Lasers sector, aimed at
reinforcing the opto-electronics segment of Leonardo
DRS
Core business growth
Complimented by acquisitions

33. 33
Medium-Term Targets
Development & Growth
Book to bill at ca. 1x
2017-2021 Revenues CAGR of 3%-5% driven by
new orders, despite challenging markets
strong backlog (i.e. large orders in Aeronautics and Electronics expected to
contribute by 2018)
Continuous improvement in profitability, with RoS at 11% by the mid-point of the
Plan driven by
higher volumes
continued focus on efficiency
Solid and flexible financial structure due to improved cash generation and material
reduction in debt
We remain committed to a disciplined financial strategy
aiming at going back to an “investment grade” credit rating
pursuing a better balance between reducing leverage, sustaining organic and
external investment and shareholders return

34. 34
Q&A

35. 35
SECTOR RESULTS

36. 36
Strong order intake in Q4, as expected, in challenging market conditions, mainly due to the UK AW159
IOS and the new exploration and escort helicopter for Italian Army
Revenues down due to persisting tough market conditions (i.e. O&G and other civil segments) and earlier
production issues with the new AW169 now resolved
Impressively resilient margins of just under 12%, driven by continued focus on efficiencies
For the FY2017, in a still challenging environment, we expect revenues almost in line with 2016,
underpinned by a strong backlog and the entry in full operation of the new AW169. Profitability solidly at
double digit, in line with 2016
4Q FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
Orders 2,199 1,029 113.7% 3,737 3,910 (4.4%)
Revenues 1,074 1,267 (15.2%) 3,639 4,479 (18.8%)
EBITA 145 177 (18.1%) 430 558 (22.9%)
ROS % 13.5% 14.0% (0.5) p.p. 11.8% 12.5% (0.7) p.p.
FY2016 Sector results
Helicopters

37. 37
Of which
DRS:
Avg. exchange rate €/$ @1.1069 in 2016
Avg. exchange rate €/$ @1.0951 in 2015
4Q FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
Orders 2,487 3,174 (21.6%) 6,726 6,974 (3.6%)
Revenues 1,901 1,865 1.9% 5,468 5,656 (3.3%)
EBITA 289 258 12.0% 558 512 9.0%
ROS % 15.2% 13.8% 1.4 p.p. 10.2% 9.1% 1.1 p.p.
4Q FY
$ Mln
2016 2015
%
Change
2016 2015
%
Change
Orders 439 483 (9.1%) 1,923 2,022 (4.9%)
Revenues 583 508 14.8% 1,753 1,805 (2.9%)
EBITA 65 33 97.0% 128 126 1.6%
ROS % 11.1% 6.5% 4.6 p.p. 7.3% 7.0% 0.3 p.p.
Good commercial performance, with book
to Bill at 1.2x
Sharp improvement in profitability due to
benefits from Industrial Plan actions and
profitability recovery in some areas
DRS top line affected by change in
perimeter
Cost savings actions offsetting lower
profitability in DRS due to change in mix
of activities
2017 Revenues and Profitability expected
to be substantially in line with 2016,
despite a more competitive environment
and the winding down of some profitable
programmes, supported by benefits
coming from industrial processes
improvements
For DRS we continue to expect positive
trend in business growth and a further
increase in profitability
FY2016 Sector results
Electronics, Defence & Security Systems*
*Now includes Defence Systems as a Division, DRS and MBDA

38. 38
Very good order intake even excluding the Eurofighter Kuwait (€ 7.95bn)
Aircrafts revenue increase offsetting slight decline in Aerostructures
Significant improvement in EBITA driven by Aerostructures
2017 revenues expected in line with 2016 and “double digit” profitability confirmed. Profitability benefitting
from efficiency-improvement and cost reduction actions aimed at offsetting the winding down of some
military programmes and lower contribution from ATR
4Q FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
Orders 368 482 (23.7%) 10,158 1,741 483.5%
Revenues 1,070 978 9.4% 3,130 3,118 0.4%
EBITA 149 149 0.0% 347 312 11.2%
ROS % 13.9% 15.2% (1.3) p.p. 11.1% 10.0% 1.1 p.p.
FY2016 Sector results
Aeronautics

39. 39
Increase in Manufacturing volumes driven by Telecommunication and Earth Observation; Space Services
in line with 2016
EBITA materially recovered, as expected
2017 Profitability expected in line with 2016, with growing Manufacturing Revenues
4Q FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
EBITA 34 10 240.0% 77 37 108.1%
FY2016 Sector results
Space

40. 40
APPENDIX

41. 41Free Operating Cash-Flow (FOCF): this is the sum of the cash flows generated by (used in) operating activities (which includes interests and income
taxes paid) and the cash flows generated by (used in) ordinary investment activity (property, plant and equipment and intangible assets) and dividends
received.
4Q FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
New Orders 4,447 4,580 (2.9%) 19,951 12,371 61.3%
Backlog 34,798 28,793 20.9%
Revenues 3,968 3,994 (0.7%) 12,002 12,995 -7.6%
EBITDA 714 692 3.2% 1,907 1,866 2.2%
EBITDA Margin 18.0% 17.3% 0.7 p.p. 15.9% 14.4% 1.5 p.p.
EBITA 506 463 9.3% 1,252 1,208 3.6%
ROS % 12.8% 11.6% 1.2 p.p. 10.4% 9.3% 1.1 p.p.
EBIT 351 285 23.2% 982 884 11.1%
EBIT Margin 8.8% 7.1% 1.7 p.p. 8.2% 6.8% 1.4 p.p.
Net result before extraordinary transactions 202 103 96.1% 545 253 115.4%
Group Net result 153 365 (58.1%) 505 487 3.7%
EPS (€ cents) 0.267 0.632 (57.8%) 0.879 0.843 4.3%
FOCF 1,094 1,242 (11.9%) 706 307 130.0%
Group Net Debt 2,845 3,278 (13.2%)
Headcount 45,631 47,156 (3.2%)
FY2016 results
Group Performance

42. 42
FY2016 results
Development costs capitalised as intangible assets at 31 december 2016
€mln
Self Funded
National Security
Self Funded
Other
Total
01 Jan 2016 Opening Balance 1,437 520 1,957
Gross R&D capitalised 160 44 204
Depreciation and write offs -126 -65 -191
Disposals 0 0 0
Net R&D capitalised 34 -21 13
Reclassifications and exchange differences 1 -9 -8
31 Dec 2016 1,472 490 1,962

43. 43
Tenor July 2020 18 months
Margin 100 bps
(1)
≈ 25 bps
(2)
2.000
725
2.167
-
500
1.000
1.500
2.000
2.500
REVOLVING CREDIT
FACILITY
UNCONFIRMED
CREDIT LINES
CASH IN HAND
Availability of
adequate
committed
liquidity lines
In order to cope with possible swings in financing needs, Leonardo can leverage
– 31 December cash balance of approx. €2.2Billion
– Credit lines worth €2.7 Billion (confirmed and unconfirmed)
 The Revolving Credit Facility was renegotiated on 6 July 2015 lowering the
margin from 180bps to 100bps. The renegotiated facility has an amount of
€2.0bn and will expire in July 2020
– Bank Bonding lines of approximately €3.8 Billion to support Leonardo’s commercial
activity
(1) Based on rating as of 31/12/2016
(2) Average. Expected to be renewed at maturity
(€mln)
As of 31 December
2016
Undrawn at 31
December 2016
Undrawn at 31
December 2016
FY2016 results
Liquidity Position (as of end December 2016)

44. 44
Helicopters
Military/Governmental
Commercial
CS&T /Other
OE
CS&T /Other
OE
Military/Governmental
Commercial
UNITS ORDERED UNITS DELIVERED
2015 REVENUES BY CUSTOMER/SEGMENT 2016 REVENUES BY CUSTOMER/SEGMENT

45. 45
Significant step forward in achieving the objectives of Growth and Development of
the Industrial Plan 2017-2021
Leonardo DRS extends leadership in infrared technology and supply of dual-use
integrated solutions for civil and military customers
Leonardo DRS will pay US$150 million for 100% of the equity of Daylight Solutions,
valuing the company at approximately 9x EV/EBITDA 2017E
Purchase price includes an earn-out, to be released upon achievement of certain
financial and operating targets for the year 2017
Following the closing of the transaction, Daylight Solutions will be one of eight
Leonardo DRS lines of business
The acquisition is subject to closing conditions, including
approval of the stockholders of Daylight Solutions
receipt of regulatory approvals (U.S. antitrust authorities, Committee on Foreign
Investment in the Unites States)
Acquisition of Daylight Solutions

46. 46
2014 2016 2018
MoD MiSe
Source: DPP (Documento Programmatico Pluriennale)
CAGR
-2,3%
42%
4,3 4,1
56% 49%
58%
4,7
44% 51%
Source: IHS Janes - Jan. 2017
CAGR
0.6%
42%
43,6 44,2
56% 49%
58%
43,2
44% 51%
Source: Leonardo DRS estimates
CAGR
1.7%
580 600
565
In 2016 defense budget at 1.15% of GDP,
below the NATO target set at 2%
Main item remain 'Personnel', while
'Investments' (Research, Development
and Acquisition) is more limited, not in
line with NATO and European trends
"White Paper on International Security
and Defense" (April 2015) not yet
implemented
Defence spending expected to grow,
according to SDSR Strategic Defence and
Security Review 2015
The weaker pound makes the acquisition
of programs abroad more expensive
Brexit could make 2% GDP target difficult
to maintain
Economy growth rate already lower than
envisaged by the "SDSR»
Defence Spending will rise with the Trump
Administration, although not yet clarified, with
particular benefits for Navy and Air Force
The Trump Administration has inaugurated a
new relationship with Aerospace and Defense
industry and intends to achieve significant cost
reductions on major aeronautic programmes
Market environment
Domestic defence budgets - Italy continues to decline

47. 47
On 15 Dec. 2016, the European Council welcomed the "package" of initiatives
presented by the European Commission known as "EDAP» (European Defence
Action Plan) in order to
make most effective the spending of the Member States in common defence
capabilities
strengthening European citizens security
promote a competitive and innovative industrial base
The initiative is based on the following pillars/steps
European Defence Fund
Investment Supply Chain
Common European Market
Launch of these initiatives makes the future and choices increasingly dependent on
the international context and the European co-operation
Market environment
European Defence Action Plan

48. 48
Source: Leonardo estimates based on NATO Budget, 2016
Reaching the 2% GDP in Italy would positively and materially impact
Leonardo military revenues, not only by preserving the national
industrial base but also by supporting potential export opportunities
Among the
largest EU
conuntries Italy
has the largest
gap with the 2%
GDP target
€ Mln
NATO countries Total 2016 Budget Δ "NATO 2% Target" Total Δ %
France 43,864 11,316 55,180 25.8%
Germany 39,743 33,980 73,723 85.5%
Netherlands 8,952 8,342 17,294 93.2%
Turkey 11,935 6,032 17,967 50.5%
Italy 18,271 22,723 40,994 124.4%
Spain 10,816 17,582 28,398 162.6%
Belgium 4,206 5,918 10,124 140.7%
Czech Republic 1,809 2,620 4,429 144.8%
Denmark 3,535 3,045 6,580 86.1%
USA 664,058 664,058 
UK 59,699 59,699 
Poland 10,496 10,496 
Greece 4,773 4,773 
Estonia 467 467 
Market environment
What if all the NATO countries reach the 2% GDP target?

49. 49
 average annual value of ca. € 19 bn (ca. € 30 bn, including logistics and after-sales services), confirmed growth in civil / commercial and a reduction in military due to the completion
of ongoing programs (mainly in US) and the lack of new programs in the given period
 average annual value of ca. € 100 bn, growing, with demand driven by Institutional, supported by missions for Earth observation, communications and navigation, and increasingly
oriented towards end-to-end solutions including 'service‘. Expected growth forecasts in satellites constellations in LEO orbit and small /medium-sized satellites (500 to 2,000 kg)
for TLC
 average annual value of ca. € 100 bn, with demand mainly driven by 'Security' (70% of the total), which benefits from border protection needs, also to monitor key areas and
respond to emergencies (i.e. natural disasters, illegal immigration)
 average annual value of ca. € 127 bn. Defence Electronics is characterized by the increasing demand for (i) integrated and interoperable solutions for C4ISR modernization, and (ii)
TBM (Tactical Ballistic Missile) solutions ; Defence Systems show a steady growth in tracked vehicles and MBT tied to new operating requirements, as well as moderate growth for
underwater systems
WORLDWIDE MARKET EVOLUTION BY MACRO-BUSINESS SECTOR (2016 - 2025) - € BN
 average annual value of € 222 bn (**). Aeronautics: Civil, wide body and single aisle, retains considerable volumes (over 70% of the market), despite reduction in wide-body
production rates (A380, B777, B747); volume of new orders is expected to decrease due to the completion of the demand "peak" . Growth in Military is linked to major programs
deliveries (EFA, F-35, Rafale, Gripen, A-400M, etc.)
 UAS – Military Appl: highly dynamic segment driven by ISR applications, with UCAV systems that will enter into service after 2025, and growing opportunities for rotorcraft systems.
Civil Appl. Significantly growing, influenced by progress in flight safety issues, certification and regulation
Aeronautics /
UAS
Helicopters
Space
Security and IT
Systems
Defence
Electronics and
Systems
KEY TRENDS (2016 – 2025)
Source: Leonardo estimates/ IHS Jane’s, 2016
CIVIL HELICOPTERS
SPACE
MILITARY HELICOPTERS
DEFENCE ELECTRONICS AND
SYSTEMS (**)
SECURITY
MILITARY AERONAUTICS (***)
CIVIL AERONAUTICS
98 111 121
32
52 66
110
126
137
108
150
187
74
91
104
15
10
8
6
8
8
2014 2019 2023
Elicotteri civili
Elicotteri militari
Spazio
Sicurezza
Sistemi ed Elettronica
per la Difesa
Aeronautica militare
Aeronautica civile
CAGR %
2016-2021
CAGR %
2021-2025
4,9
-6.8
3.3
10.7
4.6
2.4
6.13
3,0
-3.4
0.9
5.0
0.7
4.3
0 (*)
139 164 170
40
66 81105
131 13582
110
110
85
96
114
16
11
10
6
7
8
2016 2021 2025
 473
 584
 628
(*) Scarce visibility from 2021 onwards
(**) Including missile systems
(***) Including military UAS systems
Segment
reduction mainly
due to US market,
with limited effects
on Leonardo
Market environment
A&D market dimension and sector evolution

50. 50
SAFE HARBOR STATEMENT
NOTE: Some of the statements included in this document are not historical facts but rather statements of future
expectations, also related to future economic and financial performance, to be considered forward-looking
statements. These forward-looking statements are based on Company’s views and assumptions as of the date of
the statements and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in such statements. Given these
uncertainties, you should not rely on forward-looking statements.
The following factors could affect our forward-looking statements: the ability to obtain or the timing of obtaining
future government awards; the availability of government funding and customer requirements both domestically
and internationally; changes in government or customer priorities due to programme reviews or revisions to
strategic objectives (including changes in priorities to respond to terrorist threats or to improve homeland security);
difficulties in developing and producing operationally advanced technology systems; the competitive environment;
economic business and political conditions domestically and internationally; programme performance and the
timing of contract payments; the timing and customer acceptance of product deliveries and launches; our ability to
achieve or realise savings for our customers or ourselves through our global cost-cutting programme and other
financial management programmes; and the outcome of contingencies (including completion of any acquisitions
and divestitures, litigation and environmental remediation efforts).
These are only some of the numerous factors that may affect the forward-looking statements contained in this
document.
The Company undertakes no obligation to revise or update forward-looking statements as a result of new
information since these statements may no longer be accurate or timely.

51. 51
Raffaella Luglini
Head of Investor Relations & SRI
+39 06 32473.066
raffaella.luglini@leonardocompany.com
We do business in a sustainable manner, with a continued commitment to
economic and social development and the protection of public health and
the environment.
2016 Annual Results
Investor Relations & Sustainable Responsible Investors (SRI)
Valeria Ricciotti
Equity Analysts & Investors
+39 06 32473.697
valeria.ricciotti@leonardocompany.com
ir@leonardocompany.com
www.leonardocompany.com/investors
SustainabilityQuick links
Alessio Crosa
Fixed Income Analysts & Investors and
relationship with Credit Rating Agencies
+39 06 32473.337
alessio.crosa@leonardocompany.com
Manuel Liotta
Group Sustainability & ESG
+39 06 32473.666
manuel.liotta@leonardocompany.com
Member since 2010 Partecipation since
2008
Member
since 2016
Sustainability
and
Innovation
Report 2015
Contacts
Annual report 2016
Press release
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